Links in “UDAAP”
- Don’t Expect CFPB to Back Down from Expansion Plans for Complaint Database
Industry observer suspects that CFPB sees its mandate going beyond UDAAP and into "improving customer service." [9/19/14]
- CFPB to Credit Card Companies on Promotional APR Offers: We Know What You Did This Summer
Credit card companies have been officially warned by the CFPB against deceptively marketing special interest rate promotions. Certain companies have been offering consumers reduced or zero interest deals for transferring specific purchases and balances from another credit card, and then hammering consumers with hidden interest charges. The CFPB has directed that a clear disclosure of costs and risks must be made prior to signing consumers up for such programs. [9/4/14]
- Wrangling Complaints in the Shadow of the UDAAP Beast
In an age when a customer complaint can easily slip into an unfair, deceptive or abusive act or practice (UDAAP) with the flick of an examiner's wrist, your ability to effectively track and manage complaints is paramount. [8/7/14]
- Why Banks Should Be Wary of the CFPB’s Actions Against ACE
Yes, ACE Cash Express is a payday lender, not a bank. But the $10 million settlement the CFPB came to with ACE portends some troubling trends that banks should keep an eye on, such as how the CFPB is using its UDAAP authority to apply the Fair Debt Collection Practices Act to all first-party debt collectors and how the CFPB continues to use enforcement actions to impose requirements rather than the "notice and comment" rulemaking process. [7/24/14]
- Convenience Fees = Inconvenient Visit from FTC
The FTC handed down another ruling against a Houston-based debt collection agency that used deceptive tactics to bully English and Spanish-speaking consumers into paying debts. The agency used false and deceptive methods to collect more than $1.3 million in what they called âconvenience feesâ and âtransaction feesâ from consumers who authorized payments over the phone. [6/26/14]
- More States Attempting to Wield UDAAP Power
Mississippi Attorney General becomes the fourth state AG or regulator attempting to use Dodd-Frank enforcement authority against unfair, deceptive or abusive acts or practices. [6/18/14]
- Deceptive and Illegal Mortgage Servicing Practices Bring Down the Hammer
CFPB, DOJ, and HUD proposed a federal court order requiring SunTrust Mortgage, Inc. to provide $500 million in loss-mitigation relief to underwater borrowers. âTodayâs action will help homeowners and consumers harmed by SunTrustâs unlawful foreclosure practices," said Richard Cordray.  [6/18/14]
- Supreme Court Weighs In on NCUAâs MBS Lawsuits
The Supreme Court has instructed the 10th Circuit Court of Appeals to re-examine a ruling that allowed NCUA to sue several banks over deceptive mortgage backed securities they sold to failed corporate credit unions. Under the Court of Appeals ruling, NCUA was allowed to proceed with the suits despite the fact that the suits exceeded the 3-year statute of limitations. A more recent case involving an environmental action has cast a new light on the prior ruling for NCUA. [6/17/14]
- California Accuses Lender of Unfair, Deceptive Tactics
The state alleges that CashCall made misleading representations and omitted material information to lure consumers into taking out loans in amounts greater than they were seeking. The lender routinely charged rates of 135% or more. California is seeking to suspend CashCall's license. [6/16/14]
- FTC Throws “MAP” Slap
The FTC charges mortgage lead generator with violating the Mortgage Acts and Practices Advertising Rule (MAP) as a result of deceptive marketing and practices. [5/9]
